Journal of Mining Science

, Volume 49, Issue 1, pp 68–81 | Cite as

Stochastic long-term production scheduling of iron ore deposits: Integrating joint multi-element geological uncertainty

Mineral Mining Technology

Abstract

Meeting production targets in terms of ore quantity and quality is critical for a successful mining operation. In-situ grade variability and uncertainty about the spatial distribution of ore and quality parameter cause both deviations from production targets and general financial deficits. A stochastic integer programming formulation (SIP) is developed herein to integrate geological uncertainty described by sets of equally possible scenarios of the unknown orebody. The SIP formulation accounts not only for discounted cashflows and deviations from production targets, discounts geological risk, while accounting for practical mining. Application at an iron ore deposit in Western Australia shows the ability of the approach to control a risk of deviating from production targets over time. Comparison shows that the stochastically generated mine plan exhibits less risk in deviating from quality targets than the traditional mine planning approach based on a single interpolated orebody model.

Key words

Open pit optimization stochastic simulation multi-element deposits iron ore 

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Copyright information

© Pleiades Publishing, Ltd. 2013

Authors and Affiliations

  1. 1.Department of Geosciences and EngineeringCEGTU DelftNetherlands
  2. 2.COSMO-Stochastic Mine Planning Laboratory, Department of Mining and Materials EngineeringMcGill UniversityMontrealCanada

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